Contract Surety Bond Types

Below you will find a list of the most common surety bond types and a brief description of the bonds purpose.

Bid Bond - A guarantee that the contractor will enter into contract with the obligee for the amount stated in the bid and will provide a payment and performance bond.

Construction Bond - Is not a bond type, but a general term used to describe contract bonds.

Payment Bond - Assures that the suppliers, laborers, and subcontractors will be paid if the contractor defaults.

Performance Bond - Guarantees the contractor will complete the project per the terms of the contract.

Site Improvement Bond - Required to ensure public property will be restored upon the completion of a private project, in which the principal owns the land.

Subdivision Bond - Local authorities require a guarantee that the landowner completes mandatory public improvements that builders & developers make to their property.

Supply Bond - Required by the project owner, state or federal law to secure payments to suppliers.

McCormick Insurance Bond Forms

Basics of Surety Bonding